BREAKING: FBI and Brooklyn Prosecutors Seize 112 Servers and Shut 241 Crypto Scam Sites — Tens of Millions Stolen From Americans

US authorities have dealt a heavy blow to a big crypto scam network. Brooklyn prosecutors, working with the FBI, announced on Wednesday that they shut down 241 fake websites and seized 112 servers linked to the operation. The servers were hosted by companies in the United States and Eastern Europe, and the action was carried out last week after a long investigation. No arrests have been made so far.

Prosecutors say the network stole tens of millions of dollars from Americans, mainly Russian-speaking victims. Many people were drawn in by social media ads in Russian that promised easy investment profits. A fake advisor then helped them open an account on a fake trading platform, where the money appeared to grow — until they tried to withdraw it and were blocked or told to pay extra taxes and fees first.

The victims were then hit a second time. After losing money, many were contacted again with false promises that their funds could be recovered for a fee. Investigators say taking the servers, not just the websites, was the key step, because the servers held the data, victim records and software that let the group keep opening new sites and contacting old victims again.

The scale of crypto fraud in the United States is still growing. Americans reported about $11.4 billion in crypto fraud losses in 2025, up about 22% from the year before, according to FBI figures. Prosecutors said about $300,000 in stolen money has been recovered so far in this case, and work to find more is continuing.

For traders, the lesson is clear and simple. Real exchanges do not recruit investors through social media ads with guaranteed profits, and they never ask for extra tax or fee payments before a withdrawal. Anyone offering to recover lost crypto for an upfront fee should be treated as a second scam. Using only well-known, regulated platforms and checking every website address carefully remains the safest way to trade.

Read also: BREAKING: Polygon Completes Coinme Buyout — Now a Regulated US Payments Firm in 48 States

This post is news only, not financial advice. Always do your own research before buying or selling crypto.

Sources: Cointelegraph, PYMNTS, Cryptopolitan, Crypto.news